Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 37E
a.
To determine
Record August month sales transactions using the gross method of recording sales discounts.
b.
To determine
Record August month sales transactions using the net method of recording sales discounts.
c.
To determine
Determine the amount of total sales under each method.
d.
To determine
Identify the method of recording sales discount which requires an end-of-period
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Appendix 1: Gross method for sales discounts
Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts.
a. Journalize the entries to record (1) the sale, including (2) the cost of the goods sold. If an amount box does not require an entry, leave it blank.
(1)
Accounts Receivable-Bernard Retail Inc.
fill in the blank 4fb061045fa8004_2
fill in the blank 4fb061045fa8004_3
Sales
fill in the blank 4fb061045fa8004_5
fill in the blank 4fb061045fa8004_6
(2)
Cost of Goods Sold
fill in the blank 4fb061045fa8004_8
fill in the blank 4fb061045fa8004_9
Inventory
fill in the blank 4fb061045fa8004_11
fill in the blank 4fb061045fa8004_12
Feedback
a. Two entries are required: (1) for the sale on the account and (2) to record the cost of the merchandise sold and the decrease in inventory in the seller's…
Journalize the following merchandise transactions:
a. Sold merchandise on account, $12,700, with terms 2/10, net 30. The cost of the merchandise sold was $8,255.
Sale
Cost
b. Received payment within the discount period.
Sales-related transactions
Sayers Co. sold merchandise on account to a customer for $83,000 terms 1/10, n/30. The cost of the goods sold was $59,000.
a. Journalize Sayers’ entries to record the sale.
Accounts Receivable
x
Sales
x
Cost of Goods Sold
x
Inventory
x
b. Journalize the receipt of payment within the discount period.
Cash
x
Accounts Receivable
x
c. Journalize the entry to record the receipt of payment beyond the discount period of ten days.
Cash
x
Accounts Receivable
x
Sales
x
Chapter 5 Solutions
Financial And Managerial Accounting
Ch. 5 - Prob. 1DQCh. 5 - Can a business earn a gross profit but incur a net...Ch. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - How are sales to customers using MasterCard and...Ch. 5 - What is the nature of (A) a credit memo issued by...Ch. 5 - Who is responsible for freight when the terms of...Ch. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 5 - Gross profit During the current year, merchandise...Ch. 5 - Purchases transactions Elkhorn Company purchased...Ch. 5 - Prob. 3BECh. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Transactions for buyer and seller Shore Co. sold...Ch. 5 - Adjusting entries Hahn Flooring Company uses a...Ch. 5 - Asset turnover ratio Financial statement data for...Ch. 5 - Determining gross profit During the current year,...Ch. 5 - Determining cost of goods sold For a recent year,...Ch. 5 - Chart of accounts Monet Paints Co. is a newly...Ch. 5 - Purchase-related transactions The Stationery...Ch. 5 - Purchase-related transactions A retailer is...Ch. 5 - Purchase-related transactions The debits and...Ch. 5 - Prob. 7ECh. 5 - Purchase-related transactions Journalize entries...Ch. 5 - Sales-related transactions, including the use of...Ch. 5 - Customer refund Senger Company sold merchandise of...Ch. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Sales-related transactions The debits and credits...Ch. 5 - Prob. 14ECh. 5 - Determining amounts to be paid on invoices...Ch. 5 - Sales-related transactions Showcase Co., a...Ch. 5 - Purchase-related transactions Based on the data...Ch. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Normal balances of accounts for retail business...Ch. 5 - Income statement and accounts for retail business...Ch. 5 - Adjusting entry for inventory shrinkage Omega Tire...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Adjusting entry for customer refunds, allowances,...Ch. 5 - Income statement for retail business The following...Ch. 5 - Determining amounts for items omitted from income...Ch. 5 - Multiple-step income statement On March 31, 20Y9,...Ch. 5 - Multiple-step income statement The following...Ch. 5 - Single-step income statement Summary operating...Ch. 5 - Closing the accounts of a retail business From the...Ch. 5 - Closing entries; net income Based on the data...Ch. 5 - Closing entries On July 31, the close of the...Ch. 5 - Prob. 33ECh. 5 - Prob. 34ECh. 5 - Appendix 1 Adjusting entry for gross method The...Ch. 5 - Appendix 1 Discount taken in next fiscal year...Ch. 5 - Prob. 37ECh. 5 - Rules of debit and credit for periodic inventory...Ch. 5 - Journal entries using the periodic inventory...Ch. 5 - Identify items missing in determining cost of...Ch. 5 - Cost of goods sold and related items The following...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Cost of goods sold Based on the following data,...Ch. 5 - Appendix 2 Cost of goods sold Identify the errors...Ch. 5 - Closing entries using periodic inventory system...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - A Sales and purchase-related transactions for...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income statement and balance sheet...Ch. 5 - Appendix 2 Purchase-related transactions using...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Appendix 2 PR 5-9A Sales and purchase-related...Ch. 5 - 2. Net income, 185,000 Appendix 2 PR 5-10A...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Sales and purchase-related transactions for seller...Ch. 5 - Multiple-step income statement and balance sheet...Ch. 5 - Single-step income Statement and balance sheet...Ch. 5 - Purchase-related transactions using periodic...Ch. 5 - Sales and purchase-related transactions using...Ch. 5 - Appendix 2 Sales and purchase-related transactions...Ch. 5 - Appendix 2 PR 5-10B Periodic inventory accounts,...Ch. 5 - Palisade Creek Co. is a retail business that uses...Ch. 5 - Analyze and compare Amazon.com and Netflix...Ch. 5 - Analyze Dollar General Dollar General Corporation...Ch. 5 - Compare Dollar Tree and Dollar General The asset...Ch. 5 - Analyze and compare CSX, Union Pacific, and YRC...Ch. 5 - Analyze Home Depot The Home Depot (HD) reported...Ch. 5 - Analyze and compare Kroger and Tiffany The Kroger...Ch. 5 - Prob. 7MADCh. 5 - Ethics in Action Margie Johnson is a staff...Ch. 5 - Prob. 2TIFCh. 5 - Prob. 5TIFCh. 5 - Prob. 6TIFCh. 5 - Prob. 7TIF
Knowledge Booster
Similar questions
- Purchase Discounts For each of the following transactions of Buckeye Corporation, prepare the appropriate journal entry. (All purchases on credit are made with terms of 1/10, n/30, and Buckeye uses the periodic system of inventory.) July 3: Purchased merchandise on credit from Wildcat Corp. for $3,500. July 12: Paid amount owed to Wildcat Corp.arrow_forwardInstructions a. Sold merchandise on account, $13,100, with terms 2/10, net 30 on December 26. The cost of the goods sold was $8,515. b. Received payment on December 31 within the discount period. Required: Journalize the above merchandise transactions. The company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardJournalize the following merchandise transactions: a. Sold merchandise on account, $12,400, with terms 2/10, net 30. The cost of the merchandise sold was $8,060. Sale Cost b. Received payment within the discount od.arrow_forward
- Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 20%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $34,690. The cost of the merchandise sold was $24,670. 5. Purchased merchandise on account from Papoose Creek Co., $46,100, terms FOB shipping point, 2/10, n/30, with prepaid freight of $780 added to the invoice. 6. Returned $16,000 ($20,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $14,740 with terms n/15. The cost of the merchandise sold was $8,660. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $235,120. The cost of the merchandise sold…arrow_forwardTrade Discount and Cash Discounts Merchandise was purchased on account from Jacob's Distributors on May 17. The purchase price was $1,400, less a 10% trade discount and credit terms of 2/10, n/30. 1. Calculate the net amount to record the invoice, less the 10% trade discount. 2. Calculate the amount to be paid on this invoice within the discount period. 3. Journalize the purchase of the merchandise on May 17 in a general journal. Journalize the payment on May 27 (within the discount period).arrow_forwardPart IV. A. Record the following transaction of Pal Tos Sales for the month of May under the periodic inventory system and perpetual inventory system. Assume that terms for all purchases are 2/20, n/30 and terms for all sales are 1/15, n/30. Mark up for all sales is 25%. With Computation. May 5 Cash sales, P 210,000 Purchased P 550,000 merchandise from Hoo Enterprise on account. 8 Sold P 30,000 goods to Lucky Trading 11 Purchased P 150,000 merchandise from Vee Cut Sales Received P 3,000, returns of defective Merchandise Lucky Trading 15 19 Returned P 50,000 defective goods to Hoo Enterprise 22 Lucky Trading Settled its account in full 25 Paid Hoo Enterprises in full 30 Settled account with Vee Cut Sales in full B. Selected unadjusted account balance from the trial balance of Jim Crickets Cleaners for the year December 31, 2016 are as follows: With Computation Jim Cricket Cleaners Partial Unadjusted Trial Balance December 31, 2016 Debits Credits Cash P 18,000 Prepaid Rent 86,400…arrow_forward
- Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 25%, terms FOB destination, 2/10, 4. Sold merchandise for cash, $37,120. The cost of the merchandise sold was $22,710. 5. Purchased merchandise on account from Papoose Creek Co., $46,000, terms FOB shipping point, 2/10, n/30, with prepaid fre 6. Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight 8. Sold merchandise on account to Quinn Co., $15,480 with terms n/15. The cost of the merchandise sold was $8,850. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. was $150,020. 14. Sold merchandise on VISA, $232,830. The cost of the merchandise 15. Paid Papoose Creek Co. on account for…arrow_forwardUsing the accounts and amounts below, calculate Net Sales: Account Amount Sales Revenue $142,055 Purchase Discounts 1,886 Sales Discounts Sales Returns and Allowances 2,881 2,515 Cost of Goods Sold 40,889arrow_forwardQuestion Content Area Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year. Sales on account during year $463,358 Cost of merchandise sold during year 205,692 Accounts receivable, beginning of year 46,704 Accounts receivable, end of year 51,670 Merchandise inventory, beginning of year 33,192 Merchandise inventory, end of year 39,686 Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number. a.59 days b.65 days c.129 days d.70 daysarrow_forward
- Generalized Statement Instructions Instructions Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20-. Sales $156,300 Sales Returns and Allowances 2,360 Sales Discounts 4,167 Interest Revenue 425 Merchandise Inventory, January 1, 20- 29,600 Purchases 112,000 Purchases Returns and Allowances 5,640 Purchases Discounts 2,690 Freight-In Merchandise Inventory, December 31, 20-- 875 33,000 Wages Expense 27,600 Supplies Expense 700 Phone Expense 900 Utilities Expense 8,000 Insurance Expense 1,300 Depreciation Expense-Equipment Miscellaneous Expense 3,800 590 Interest Expense 4,700 Harrow_forwardSchofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts. A. Journalize the entries to record the sale on December 31. B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* *Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardSchofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The cost of the merchandise sold was $8,000. Assuming Schofield Co. uses the gross method of recording sales discounts. A. Journalize the entries to record the sale on December 31. B. Journalize the entries to record the receipt of payment assuming it is made within the discount period on December 31.* C. Journalize the entries to record the receipt of payment assuming it is made beyond the discount period on December 31.* *Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSSchofield CompanyGeneral Ledger ASSETS 110 Cash 120 Accounts Receivable-Bernard Retail Inc. 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning